THE headcount at the merged Anglo Irish Bank/Irish Nationwide operation could fall by as many as 700 by the end of the year, but about 400 of these staff could be redeployed to other banks.

The news comes as job fears grow among the institutions' 1,700 workers on foot of yesterday's announcement that both entities will be merged and wound down.

Sources last night confirmed that while the combined entity was likely to cut 700 jobs by the end of this year, that didn't mean that all 700 jobs would be lost.

"The deposits and associated assets of Anglo and Irish Nationwide will be sold on to another bank, that bank will also take the staff involved in deposits," said one source.

In a statement, INBS stressed that the position of any of its transferring staff would be "safeguarded" in accordance with employment legislation.

It is understood that about 400 staff could migrate to a new bank under this process, including many of the 200 employed across INBS's branch network.

Duplication

Job losses are expected in some areas as the merged entity eliminates duplication in areas like Nama units, administration and other services.

In an email to staff last night, Anglo Irish Bank boss Mike Aynsley acknowledged that some redundancies were "inevitable" and promised to "provide clarity" to staff as soon as possible.

Banking staff trade union the IBOA last night slammed the move to transfer INBS's deposits, insisting the building society's workers "must not be treated as collateral damage" in efforts to rehabilitate the institution.

The trade union is seeking urgent meetings with Irish Nationwide bosses as well as senior executives at the National Treasury Management Agency, which is running the auction of both banks' deposit books.